February 26, 2019 - JPMorgan Chase
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February 26, 2019
AWM delivers superior client outcomes and consistent financial performance
A Consistent through-the-cycle B Client-centric C Next-generation growth
Leading long-term investment performance Fiduciary for institutions, advisors, and Digital everything
individuals for nearly 200 years
Increasing revenue and pre-tax income Branch + Advisor = Power of JPMC
while investing in our future Deep expertise across all asset classes
leads to superior client outcomes Global footprint expansion
Reliable growth engine with strong ROE
Obsess about the client journey
Never stop investing in the business
Positive asset flows every year Continuous investments
95% retention rate for top talent1
for over a decade in talent + technology
Note: For footnoted information, refer to slide 16
1
A Consistent: Reliable growth engine with strong ROE
Record
Revenue ($B)1 Pretax income ($B) Client assets (EOP, $T)
5-yr 5-yr 5-yr
2013 2014 2015 2016 2017 2018 CAGR 2013 2014 2015 2016 2017 2018 CAGR 2013 2014 2015 2016 2017 2018 CAGR
$14.1 $2.8 $2.7
$3.7
$13.8 3.1% 2.0% 3.1%
$3.6
$2.3 AUS + AUM
$3.3 $1.6 $1.5
LT AUM 5.0%
$12.1 $1.2
Pretax margin ROE Loans (Avg.) Deposits (Avg.) LT AUM flows
2018
26% 31% $139B $137B $25B
Note: For footnoted information, refer to slide 16
2
A Consistent: Diversified revenue growth
Revenue ($B)1
+$2.0
+$0.9 $(0.6)
$(0.5)
+$0.9
$14.1
+$1.3
$12.1
2013 Banking Markets Flows Pricing & other Simplification 2018
Numbers may not tie due to rounding
Note: For footnoted information, refer to slide 16
3
A Consistent: Simplify for growth
Expense ($B)1
+$1.7
+$0.7 $(0.8)
+$1.0
$10.4
+$0.8
$8.7
2013 Enterprise / Revenue / Growth initiatives Simplification 2018
controls spend performance-driven
Numbers may not tie due to rounding
Note: For footnoted information, refer to slide 16
4A Consistent: Simplify for growth
Key initiative metrics over past two years
+125 +17 +464 +276
New products: funds launched1 Front office locations opened New hires into high-growth Modernized apps launched
business segments
+40
+12 +361
Growth
+143
+25 +133
+22
+18
+10 +10 +3 +66
+2 +37
0
Equity FI Sol. Alts Beta Liq. US LatAm EMEA Asia Distribution Product Digital & Platform Cloud
for
/ Advisors / Other Big Data modernization migration
-3 0 0
-5
-11
-2 -2
Simplify
-4
-42
-227
-217
-79 -240
-89 -13
-229 -21 -457 -227
Funds merged / closed1 Front office locations closed Reductions in low-growth business Legacy apps decommissioned
segments
Note: For footnoted information, refer to slide 16
5A Consistent: Actively reducing costs for our clients
What we’ve done Example Savings for clients
$350 million
Largest equity
JPMC Fees1 per year
fund fees
20%
Equity bps $200 million
External trading
commissions per trade per year
46%
Large cap $75 million
Third-party fund fees
beta fees per year
50%
Note: For footnoted information, refer to slide 16
6A Consistent: Leading long-term investment performance
2018 % of JPMAM long-term mutual fund AUM over peer median (net of fees)1
>74% 50-74% 25-49% 0-24%
1-year 3-year 5-year 10-year
Total
JPMAM 73%
68% 73% 85% 83%
Equity 74%
65% 74% 85% 93%
65%
Fixed
78%
Income 78% 71% 78% 59%
78%
Multi-Asset
Solutions &
62% 71% 92% 85%
Alternatives
Note: For footnoted information, refer to slide 16
7A Consistent: Diversification drives flows
5Y Total Client Asset Flows ($B)
Publically-traded peers only
123 127
100 97
89 82 #1 BLK2 $1,037
71
JPMC Total Client Asset 50
36
Flows ($B)1 28
Legend #2 JPMC3 $443
≥$0Legend
JPM CAGR
B Client-centric: Alpha engines drive growth Industry CAGR
Core JPMAM Solutions
AUM1 5Y % over peer median2 AUM
4%
4%
EM & Asia 81%
Pacific
JPMAM
Equity International 61% Core Solutions
16%
Funds 85%
12%3
U.S. 96%
2013 2018
AUM1 5Y % over peer median2
SmartRetirement
5%
5%
Unconstrained 86%
JPMAM Munis 2%
Fixed
EMD 49%
Income Insurance
78%
Funds HY 85%
U.S. / Global
85% 2013 2018
Broad Markets
2013 2018
9
Note: For footnoted information, refer to slide 17B Client-centric: Successfully innovating across our platform
Hedged Equity Fund JPST: Ultra-Short Income ETF
5Y annualized return: 3rd percentile1
8.5% 2.2%
2.1%
1.9%
5.8% Morningstar rating2 1.7% 1.7%
1Y Net 1.6% 1.5%
Return:
2.1% 6th
#1 in 2018 Flows
Morningstar category rank3
percentile6
Category Fund S&P 500
Average Total Return
Annualized
Std. Dev. (%)4 6.9 6.0 10.9
Infrastructure JPST Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6
AUM -0.02% -0.02%
-0.09%
-0.16% -0.13%
1Y Max
JPMAM:
Drawdown6
22% CAGR
-0.50%
Industry:
14% CAGR5
-0.70%
2013 2018
Note: For footnoted information, refer to slide 18
10B Client-centric: Advising individuals on both sides of their balance sheet
Deposits Credit
WM year-end spot balance ($B) WM year-end spot balance ($B)
Net inflow from new clients Jumbo mortgages1
+9%
Loans (ex-mortgages)
CAGR 148
131 18%
118
111 CAGR
162 104
156 95
147 146
138 ~$50B
Cumulative net inflows 6%
from new clients CAGR
~$70B
Cumulative non-op
deposits and migration
2013 2014 2015 2016 2017 2018
to other AUS
Net charge-offs (%) Jumbo mortgages1
Loans (ex-mortgages)
0.50%
0.25%
0.06% 0.01%
0.02% 0.00%
2014 2015 2016 2017 2018
2013 2014 2015 2016 2017 2018
Note: For footnoted information, refer to slide 18
11C Next-generation growth: Digital everything
Digital tools for different client needs
Advisors Institutions Individuals
Digital Portfolio Insights Global Cash Portal You Invest
Digital Portfolio Insights helps advisors build stronger portfolios Global Cash Portal enables institutions to centrally manage You Invest by J.P. Morgan is an easy, smart and low cost way
through sophisticated analytics and customized insights and execute liquidity investments online to invest online
Powered by Customized insights Analytics for stronger Seamless, digital execution Access investments through Easy-to-navigate desktop
J.P. Morgan Spectrum & analytics portfolio construction capabilities Chase mobile app home page
~5,000 ~$700 million 89%
Financial Advisors using Digital Portfolio Insights Average daily trade volume of clients are first-time investors with Chase
since Summer 2018 launch
12C Next-generation growth: Integrating our human expertise with distinctive digital offerings
2013 Expanding our offering… 2018 …across the spectrum
UHNW
Affluent / HNW
Aspiring Affluent
Branch Network Upper Mass
Mass
Underbanked
College
AWM Expertise Chase Digital Platform
13C Next-generation growth: Global footprint expansion
Capturing the full U.S. Wealth Management opportunity1 Growing our Wealth Management Advisors
Global Wealth Management
Chase Wealth Management
+6%
CAGR ~6,500
UHNW $4T Advisors
~8% share
$10mm+ liquid net worth wallet
~5,500
Advisors
HNW $10T ~1% share
$3-10mm+ liquid net worth wallet
Mass Affluent $20T ~4% share
$0.5-3mm+ liquid net worth wallet
2016 2017 2018 2019F
Note: For footnoted information, refer to slide 18
14How we measure against our targets
LT AUM Revenue Pretax income Pretax
Flows growth growth margin ROE
Medium-term
targets (+/-) 4% 5% 10% 30% 25%+
2016 – 2018 2 – 5% (1) – 8% 1 – 10% 26 – 28% 24 – 31%
Results range
Target met?
15Agenda
Page
1 Notes 16Notes on slides 1-7
Slide 1 – AWM delivers superior client outcomes and consistent financial performance
1. Employees identified as top talent by senior executives
Slide 2 – Consistent: Reliable growth engine with strong ROE
1. Historical revenue revised as a result of the adoption of the new accounting guidance for revenue recognition, effective January 1, 2018
Slide 3 – Consistent: Diversified revenue growth
1. Historical revenue revised as a result of the adoption of the new accounting guidance for revenue recognition, effective January 1, 2018
Slide 4 – Consistent: Simplify for growth
1. Historical expense revised as a result of the adoption of the new accounting guidance for revenue recognition, effective January 1, 2018
Slide 5 – Consistent: Simplify for growth
1. Fund activity across pooled vehicles. Excludes Brazil-domiciled fund activity and activity where funds were transferred to third-party managers
Slide 6 – Consistent: Actively reducing costs for our clients
1. Inclusive of reductions across Asset & Wealth Management and Chase Wealth Management
Slide 7 – Consistent: Leading long-term investment performance
1. The “% of 2018 JPMAM long-term mutual fund AUM over peer median” analysis represents the proportion of assets in mutual funds that are ranked above their respective peer category
median on 1, 3, 5, and 10 year basis as of December 31, 2018. All quartile rankings, the assigned peer categories and the asset values used to derive this analysis are sourced from Lipper for
the U.S. and Taiwan domiciled funds; Morningstar for the U.K., Luxembourg and Hong Kong domiciled funds; Nomura for Japan domiciled funds and FundDoctor for South Korea domiciled
funds. Includes only Asset Management retail open-ended mutual funds that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and
Brazil domiciled funds. Quartile rankings are done on the net-of-fee absolute return of each fund. The data providers redenominate the asset values into U.S. dollars. This % of AUM is based
on fund performance and associated peer rankings at the share class level for U.S. domiciled funds, at a “primary share class” level to represent the quartile ranking of the U.K., Luxembourg
and Hong Kong funds and at the fund level for all other funds. The “primary share class”, as defined by Morningstar, denotes the share class recommended as being the best proxy for the
portfolio and in most cases will be the most retail version (based upon annual management charge, minimum investment, currency and other factors). Where peer group rankings given for a
fund are in more than one “primary share class” territory both rankings are included to reflect local market competitiveness (applies to “Offshore Territories” and “HK SFC Authorized” funds
only). The performance data could have been different if all funds/accounts would have been included. Past performance is not indicative of future results. The classifications in terms of
product categories shown are J.P. Morgan’s own
16Notes on slides 8-9
Slide 8 – Consistent: Diversification drives flows
1. Includes Asset & Wealth Management, Chase Wealth Management investments, and new-to-firm Chase Private Client Deposits from 2012-2018; prior to 2012, flows data for Chase Wealth
Management investments and new-to-firm Chase Private Client Deposits unavailable
2. Total AUM net flows
3. Includes Asset & Wealth Management total client flows, Chase Wealth Management investments, and new-to-firm Chase Private Client Deposits
4. Represents Investment Management division total assets under supervision (“AUS”) net flows
5. Represents Investment Management total AUM inflows plus Wealth Management fee-based asset flows
6. Includes net new money from Asset Management and Global Wealth Management divisions. Net new money for 2014 reflects old reporting structure due to data availability. In 2018, UBS
began to report flows for 2016 -2018 in U.S. dollars ("USD"). Flows for 2014 and 2015 were converted to USD at the 2014-2015 daily average exchange rate
Slide 9 – Client-centric: Alpha engines drive growth
1. Source: Strategic Insight Simfund retrieved February 22, 2019. Excludes ETFs and Fund-of-funds. The classifications in terms of product categories shown are J.P. Morgan’s own
2. The “5Y % over peer median” analysis represents the proportion of assets in mutual funds that are ranked above their respective peer category median on 5-year basis as of December 31,
2018. All quartile rankings, the assigned peer categories and the asset values used to derive this analysis are sourced from Lipper for the U.S. and Taiwan domiciled funds; Morningstar for the
U.K., Luxembourg and Hong Kong domiciled funds; Nomura for Japan domiciled funds and FundDoctor for South Korea domiciled funds. Includes only Asset Management retail open-ended
mutual funds that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds. Quartile rankings are done on the net-
of-fee absolute return of each fund. The data providers redenominate the asset values into U.S. dollars. This % of AUM is based on fund performance and associated peer rankings at the
share class level for U.S. domiciled funds, at a “primary share class” level to represent the quartile ranking of the U.K., Luxembourg and Hong Kong funds and at the fund level for all other
funds. The “primary share class”, as defined by Morningstar, denotes the share class recommended as being the best proxy for the portfolio and in most cases will be the most retail version
(based upon annual management charge, minimum investment, currency and other factors). Where peer group rankings given for a fund are in more than one “primary share class” territory
both rankings are included to reflect local market competitiveness (applies to “Offshore Territories” and “HK SFC Authorized” funds only). The performance data could have been different if all
funds/accounts would have been included. Past performance is not indicative of future results. The classifications in terms of product categories shown are J.P. Morgan’s own
3. Source: McKinsey, Strategic Insight Simfund, Cerulli, P&I. Based on 2013-2017 data
17Notes on slides 10-14
Slide 10 – Client-centric: Successfully innovating across our platform
1. Source: Morningstar. 5Y return are net of fees for Institutional Share class as of December 31, 2018. 5Y percentile rankings for Institutional Share class as of December 31, 2018. Category
Average based on Options-based Morningstar category. Other share classes may have higher expenses, which would lower returns. Retrieved February 21, 2019
2. Source: Morningstar. Star rating for Institutional Share class as of December 31, 2018. Other share classes may have different performance characteristics and may have different ratings. All
star ratings sourced from Morningstar reflect the Morningstar Overall RatingTM
3. Source: Strategic Insight Simfund retrieved January 18, 2019, based on Options-based Morningstar fund category
4. Source: Morningstar. Hedged Equity based on Institutional Share class as of December 31, 2018. Category Average based on Options-based Morningstar category
5. Source: Preqin. Based on 2013-2017 data
6. Source: Morningstar as of December 31, 2018. Retrieved February 22, 2019. Returns are net of fees, max drawdown based on daily returns. Peer funds shown represent 3 largest ETFs and 3
largest open-end mutual funds by AUM in the Ultrashort Bond category as of 12/31/18. Peer funds include iShares Short Treasury Bond ETF, PIMCO Short Term Fund, Putnam Short Duration
Income Fund, Lord Abbett Ultra Short Bond Fund, PIMCO Enhanced Short Maturity Active ETF, and iShares Floating Rate Bond ETF. Mutual fund share classes represented are Institutional or
No-load shares
Slide 11 – Client-centric: Advising individuals on both sides of their balance sheet
1. HELOC Balances and Charge-offs are part of “Loans (ex-mortgages)” up until 2014 and part of “Jumbo mortgages” starting 2015
Slide 14 – Next-generation growth: Global footprint expansion
1. Total wallet estimates based on Equifax – IXI Network Database
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